5 Best AI Stocks To Buy Now

4. Fortinet, Inc. (NASDAQ:FTNT)

Market Capitalization as of September 5: $38.322 billion

Number of Hedge Fund Holders: 43

Ranking 4th on our list of best AI stocks to buy now is FTNT. Fortinet, Inc. (NASDAQ:FTNT) is a California-based company that provides AI-driven cybersecurity solutions that can function at machine speed. Fortinet’s GAAP profit margins are considerably higher than those of its peers, making it one of the best artificial intelligence stocks to buy now. The company expects Q3 revenue to be in the range of $1.105 billion to $1.135 billion, and the diluted non-GAAP net income per share ranging between $0.26 to $0.28. 

On September 2, Atlantic Equities analyst Peter Sazel initiated coverage of Fortinet, Inc. (NASDAQ:FTNT) with an Overweight rating and a $76 price target. Fortinet, Inc. (NASDAQ:FTNT) is the second largest cybersecurity player with a “strong track record” of GAAP profitability and free cash flow per share growth, the analyst told investors in a research note.

Among the hedge funds tracked by Insider Monkey, Fortinet, Inc. (NASDAQ:FTNT) was part of 43 public stock portfolios at the end of Q2 2022, up from 39 funds in the prior quarter. Arrowstreet Capital is a prominent stakeholder of the company, with 3.80 million shares worth $215.4 million. 

Here is what ClearBridge SMID Cap Growth Strategy has to say about Fortinet, Inc. (NASDAQ:FTNT) in its Q3 2021 investor letter:

“Performance among our cohort of IT and Internet companies was mixed, with enterprise software makers thriving while more consumer-oriented stocks faced headwinds. Cyber security software maker Fortinet benefited from a heightened awareness of the need to protect against sophisticated attacks. We are attracted to the recurring revenue nature of these software companies that are increasingly delivering their products on a subscription basis through the cloud. Software business models also tend to avoid many of the inflationary issues facing companies with a physical product or service.”